Canadian Underwriter
News

2014 natural disaster insured losses well below 10-year average


January 13, 2015   by Canadian Underwriter


Print this page Share

Last year had a five-year low for insured losses from natural catastrophes, although the number of events was on par with the decade average, Impact Forecasting reported Tuesday.

In 2014, there were 258 separate global natural disasters, just below the 10-year average of 260 events, according to the firm, which is an arm of Aon Benfield.

Combined total insured losses were $39 billion, 38% below the decade average of $63 billion, and the lowest annual insured loss total since 2009, according to the firm. All figures are in U.S. dollars.

The two costliest events of the year were both severe thunderstorms. In Europe in June, losses were $3.0 billion, while in the United States in May, losses reached $2.9 billion.

At $132 billion, global economic losses in 2014 were also below the 10-year average of $211 billion. Flooding in India and Pakistan in September caused an estimated $18 billion, the largest economic loss of the year.

Last year was also the fifth consecutive year that Pakistan experienced a billion-dollar flood event, Impact Forecasting noted.

“Global insured property catastrophes accounted for 8.6% of global property premium in 2014, compared to a 10-year average of 13.9%,” Stephen Mildenhall, CEO of Aon Analytics noted in a statement.

“The secular increase in catastrophe losses since 1980, which is broadly in-line with global GDP, continues to be an engine of growth for the insurance industry,” he added.

“With its abundant capital and sophisticated risk management tools, the industry is better positioned than ever to deliver on its core mission of providing critical risk transfer products that enable growth and development all around the world.”

Overall, flood, tropical cyclones and severe weather accounted for 72% of all economic losses in 2014.

“Despite 27 individual billion-dollar natural disasters in 2014, overall economic losses were below average for a second consecutive year,” Steve Bowen, associate director and meteorologist with Impact Forecasting also noted.

“The most significant losses were found in Asia, where the region sustained 57% of the overall economic loss and each of the top five costliest events,” he said. “However, the United States incurred 53% of the global insured loss total and accounted for six of the top ten costliest insured losses of the year.

“The severe thunderstorm peril was the most expensive for public and private insurers as hail and damaging straight-line wind events caused multi-billion-dollar losses in the U.S. and Europe. Historically the costliest peril, tropical cyclone losses were again below normal globally on an economic and insured loss basis following another year without a major landfalling U.S. hurricane.”

Last year was also the warmest year since global land and ocean temperature records began in 1880, according to Impact Forecasting’s report.


Print this page Share

Have your say:

Your email address will not be published. Required fields are marked *

*